General Terms of Lease
(Government Real and Related Personal Property)
1. Term – “Invitation for Bids”. The term “Invitation for Bids” as used herein refers
to the foregoing Invitation for Bids, its schedule, and the Form of Lease attached
thereto; the Instruction to Bidders; the general terms of lease set forth herein; and
the provisions of the Special Terms of Lease, Bid Form, and Acceptance; all as
may be modified and supplemented by any addenda that may be issued prior to
the time fixed in the Invitation for Bids for the opening bids.
2. Descriptions in Invitations for Bids. The descriptions of the property set forth in
the Invitation for Bids are believed to be correct, but any error or omission shall
not constitute ground or reason for nonperformance of the contract of lease, or
claim by lessee for allowance, refund, or deduction from any installment rental
payment.
3. Condition of Property. The property is offered for lease and will be leased “As
Is” and “Where Is” without representation, warranty, or guaranty as to quantity,
quality, character, condition, size, or kind, or that the same is in condition or fit to
be used for the purpose for which intended, and no claim for any allowance or
deduction upon such ground will be considered after bids have been opened.
4. Continuing Offers. Each bid received shall be deemed to be a continuing offer
after the date of bid opening for the number of calendar days specified in the bid,
unless the bid is accepted or rejected by the Government before expiration of the
specified number of calendar days. If the Government desires to accept any bid
after the expiration of the specified number of calendar days, the consent of the
bidder shall be obtained prior to such expiration.
5. Financial Data, References. The bidder shall promptly furnish to the
Government, after bid opening, financial data, references, and such other related
information as may be requested by the Government.
6. Possession. The successful bidder agrees to assume possession of the property
within 15 calendar days of any written request given by the Government after
acceptance of his bid. Should the successful bidder fail to take actual possession
within such period, he shall nonetheless be charged with constructive possession
commencing at 12:01 a.m., local time at the location of the property, on the 16th
calendar day after such request by the Government. The word “possession” shall
mean either actual physical possession or constructive possession. If such
possession occurs prior to the date of the formal instrument of lease the successful
bidder:
a. Shall pay to the Government for use and occupancy of the property,
during the interval from the date of possession to the date of the formal
instrument of lease, rental at the same rate stated in his bid.
b. Shall pay all taxes levied or assessed upon such possession, use, or
occupancy as distinguished from ownership of the property.
7. Risk of Loss. As of the date of assumption of possession of the property, or the
date of the formal instrument of lease, whichever occurs first, the successful
bidder shall assume responsibility for care and handling and all risks of loss or
damage to the property and have all obligations and liabilities of tenancy.
8. Insurance. The successful bidder shall procure and maintain at his expense during
the term of the lease, insurance for the benefit of the Government in such kinds
and amounts as may be required by the Government; required insurance shall be
in companies acceptable to the Government and shall include such terms and
provisions as may be required to provide coverage satisfactory to the
Government; insurance shall be effective as of the date of the formal instrument
of lease, whichever occurs first. Information concerning issuance will be
furnished by the Office of Administration of the General Services Administration
issuing office at the address given in the Invitation for Bids.
9. Antitrust Laws. The contract of lease made by acceptance of a bid by the
Government may be transmitted to the Attorney General of the United States for
his advice as to whether the proposed use of the property would tend to create or
maintain a situation inconsistent with the antitrust laws. The acceptance of any
bid by the Government may be rescinded by the Government, in case unfavorable
advice is received from the Attorney General, without liability on the part of the
Government other than to return the earnest money deposit without interest.
10. Instrument of Lease. The Government shall with 90 calendar days after
acceptance of a bid, or within such longer period as may be agreed upon in
writing, present a formal instrument of lease, prepared in accordance with Form
of Lease set forth in the Invitation for Bids, and in accordance with the bid which
was accepted, to the successful bidder for his execution. After execution by the
successful bidder, the instrument shall be promptly executed by the Government
and the lessee shall be offered possession of the property if possession was not
previously granted.
11. Payment. Contemporaneously with the delivery of the formal instrument of lease
to the successful bidder, after execution by the Government, the successful bidder
shall pay to the Government the balance of the first rental installment and furnish
evidence of insurance coverage. If possession was assumed by the successful
bidder prior to the delivery of the formal instrument of lease, the successful bidder
shall pay to the Government, in addition to the sum required in the preceding
sentence, an amount determined in accordance with 6-a, above.
12. Revocation of Bid and Default. In the event of revocation of a bid after the
opening of bids but prior to acceptance, or in the event of revocation of a bid after
notice of acceptance, or in the event of any default by successful bidder in the
performance of the contract of lease created by such acceptance, or in the event of
failure by the successful bidder to consummate the transaction, the deposit,
together with any payments subsequently made on account may be forfeited at the
option of the Government, in which event the bidder shall be relieved from further
liability, or without forfeiting the said deposit and payments, the Government may
avail itself of any legal or equitable rights which it may have under the bid or
contract of lease.
13. Contract. The Invitation for Bids, and the bid when accepted by the Government,
shall constitute an agreement for lease between the successful bidder and the
Government. Such agreement shall constitute the whole contract to be succeeded
only by the formal instruments of lease, unless modified in writing and signed by
both parties. No oral statements or representations made by, or for, or on behalf
of either party shall be a part of such contract. Nor shall the contract, or any
interest therein, be transferred or assigned by the successful bidder without
consent of the Government and any assignment transaction without such consent
shall be void.
14. Officials Not to Benefit. No member of or delegate to the Congress, or resident
commissioner, shall be admitted to any share or part of the contract of lease or to
any benefit that may arise therefrom, but this provision shall not be construed to
extend to the contract of lease if made with a corporation for its general benefit.
15. Covenant Against Contingent Fees. The successful bidder warrants that he has
not employed or retained any person or agency to solicit or secure this contract
upon any agreement or understanding for a commission, percentage, brokerage, or
contingent fee in addition to the consideration herewith set forth. This warranty
shall not apply to commissions payable by the successful bidder upon the contract
secured or made through bona fide established commercial agencies maintained
by the successful bidder for the purpose of doing business. “Bona fide established
commercial agencies” has been construed to include licensed real estate brokers
engaged in the business generally.
GSA Form 1743
Revised 05/1974